Signal Peak Energy

Signal Peak Energy is based in Montana and is the operator of an underground Signal Peak Mine in Musselshel County, Montana, that opened in September 2009. Formerly known as the Bull Mountain mine, Signal Peak Mine has newly built access to the Burlington Northern Santa Fe railroad that leads to the BNSF's main rail line in Broadview, Montana. The 35 mile line was built at a cost of $105 million.

The Boich Group and FirstEnergy invested $400 million to reopen the mine, which will produce an estimated 12.5 million tons of annually by the end of 2010. On December 3, 2009 the companies announced that they planned to sell much of the coal to growing Asian markets. Additionally, FirstEnergy has a 15-year contract to buy up to 10 million tons of coal annually from the mine and has tentative contracts with rail haulers. The FirstEnergy coal will supply four power plants along Lake Erie and be marketed to other power plants in Ohio and Pennsylvania.

According to Montana Governor Brian Schweitzer at the mine's reopening: "This is a mine that will add 25 percent to the overall coal mining that we do in Montana."

September 2010: Coal Mine Cited for Safety Violations
In 2010 three Montana mines have were cited with dozens of safety citations as federal officials step up enforcement against mines that have had repeated problems. Officials cited the Stillwater platinum mine for 11 violations; Signal Peak Mine, which produces coal, for 44 violations; and Revett Mineral's Troy silver mine for 24 violations.

The citations detailed 21 problems that inspectors said could cause serious injury or illness. The mines drew scrutiny because of past problems, Mine Health and Safety Administration stated.

April 2011: Feds open lands to mining leases
On April 20, 2011 the BLM it would sell leases for more than 61 million tons of coal in central Montana. The leases on 2,680 acres near the Signal Peak Mine, will be auctioned in a competitive sale the summer of 2011. The sale would open an additional 72 million tons of private and state coal reserves to potential mining operations.

Congressional Deal Would Transfer Coal Tracts to Texas Company
On March 23, 2011, the federal government stated that it would give an estimated 145 million tons of publicly owned coal to Great Northern Properties based in Houston, Texas under an exchange backed by members of Congress that calls for future royalties and other coal reserves to go to the Northern Cheyenne Tribe. Supporters stated that the deal would likely accelerate mining in Montana and deliver "tens of millions" in revenue to the impoverished tribe.

In June, 2011 a top Interior Department official questioned the proposal to transfer 232 million tons of publicly owned coal to a private company under an exchange touted as benefiting Montana's Northern Cheyenne tribe. Great Northern Properties stands to get almost twice as much coal as it would give the tribe in the proposed deal, although not all the fuel the company received could be mined. The company and tribe also would share tens of millions of dollars in future coal royalties. Interior Department Deputy Assistant Secretary Jodi Gillette said an appraisal is needed to ensure the two sides get equal value out of the swap. Even if it's done fairly, the state and federal government stand to lose any royalties, Gillette said.

The deal is backed by leaders of the impoverished tribe, Montana's congressional delegation and Signal Peak Energy, a 2-year-old underground mine near Roundup owned by Ohio-based Boich Group and power company FirstEnergy Corp.. Montana Rep. Denny Rehberg warned Wednesday that opposition from Interior "could blow up the deal" and threaten the future of Signal Peak. Great Northern acquired rights to the coal beneath the reservation from Burlington Northern Railroad in 1992. Tribal leaders say those rights should have been turned over to the Northern Cheyenne in 1900, when the reservation was expanded to include the land above the underground reserves but not the coal itself.

Citizen groups

 * Citizens for Clean Energy
 * Montana Environmental Information Center
 * Northern Plains Resource Council
 * Climate Ground Zero
 * Northern Rockies Rising Tide

Related SourceWatch articles
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